Apple Inc (AAPL)

[fmikehugo]

10:08 AAPL Apple: Preview of 2Q07 indicates continued positive momentum - JMP (93.53 -0.72) -Update-

JMP says for AAPL's March qtr, they are forecasting rev of $5 bln and EPS of $0.59. They believe they have modeled more holiday seasonality into the model than others, but overall their checks indicate that momentum with AAPL continues to be positive.

The firm believes they could see upside from the Mac business and believe there is at least $0.02 of upside from better than expected gross margins due to continued favorable component pricing, particularly NAND flash pricing.

The firm says that a sleeper hit moving forward could be the Apple TV, which was released at the beginning of April, but it will have no impact on the March qtr.